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The Ramsey Show

You’re Doing Better Than You Think!

14 Nov 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What is discussed at the start of this section?

29.933 - 56.91 Ken Coleman

Live from the headquarters of Ramsey Solutions, this is the Ramsey Show. It's where we help you win in your life, specifically by talking with you, coaching you in your money, in your work, and in your relationships. The phone number to jump in is 888-825-5225, 888-825-5225. I'm Ken Coleman, and I'm with the lovely, the talented, the enthusiastic, the unstoppable, the incomparable.

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56.95 - 58.692 Ken Coleman

She's still waving me on here.

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58.672 - 83.447 Ken Coleman

jade warshaw and we are here for you jade you ready to go let's go i must tell you for the youtube audience you're gonna have to uh make sure you really check out the fit today she is look at that she's gonna stand up she's rocking the air jordan is that uh actually suede is it suede it's uh the suede sweatsuit that's what i like to call it suede yeah suede sweatsuit i am just rocking the brawny shirt uh because i couldn't find anything else in the closet

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83.849 - 84.97 Ken Coleman

But we are here for you.

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84.99 - 86.432 Jade Warshaw

That's your choice, Ken. That's your personal choice.

86.452 - 113.738 Ken Coleman

No matter what we're wearing, we are here for you. David is up in Springfield, Massachusetts. David, how can we help? Hi, thanks for taking my call. You bet. What's up? All righty. So I am a mattress salesman. I'm currently driving an hour to work every day and back. I have zero debt. My total cost of living is $700 a month. That includes $520 for gas. Now, I was wondering if I should...

114.646 - 136.452 Ken Coleman

move out towards there because I currently am not paying rent. So that could jack up my cost of living, but it could take a lot of stress off of myself. Or I can move within the company to a location closer to where I live, like within five to 10 minutes. There's no guarantee I'd stay at one store though, and it could possibly lower my income. So I was just wondering what I should do.

137.123 - 158.225 Ken Coleman

Okay, so no to lowering the income. So that's not an option because you have too many other options in this economy right now to where there's just no viable reason for you to lower your income. Right. So making the move closer to the current role to me is the best option you've given me. I'll give you another option in a minute. I'm going to tell you why.

159.066 - 172.402 Ken Coleman

Yes, you're going to have to pay rent, but you know what? That's called adulting. It's time, you know, to do that anyway. Number two, you're going to save money on the gas, but you're also going to take less wear and tear or put less wear and tear on the car too.

Chapter 2: What options does David consider for his job commute?

364.896 - 365.779 Jade Warshaw

That's right.

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365.799 - 388.441 Ken Coleman

Makes sense, David. Yeah, absolutely. And one last thing. I think I was a little unclear on the income. So it is a flat rate or commission. So it's a possibility of lowering my income. However, that's not a definite. So I could be making even more money by moving closer. I didn't know that was an option. That's my favorite option. Yeah, so I wasn't clear about that. I'm sorry.

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388.501 - 403.857 Ken Coleman

Yeah, so here's what Jay and I are saying. We're in a complete agreement. I just want you to be stable. I want you to make that work rhythm. Here's what I know. I'm getting ready to post right now on the commercial break. I'm going to Instagram. I was working on this. And I'm reading all this well-being at work stuff. Let me tell you something.

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403.938 - 428.457 Ken Coleman

If you're sick of your job, I can promise you you're sick because of your job. I'm getting ready to post that. And so when a young man like this is, and anybody, is driving all that hours and you're sick, you get sick, literally. You know what I'm saying? Mentally, emotionally, and then that leads to the physical lack of wellness. So my advice, David, was I want you to be well physically.

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429.348 - 454.25 Ken Coleman

so that we can make the right choice. But if you can stay local, meaning we switch jobs and we don't go backwards financially, I agree with Jade, that is the best choice for all of the reasons. The car wear and tear, the gas money. Uh, the rent, Hey, you're saving money on rent right now. I love that move. Uh, and Oh, by the way, I get to stabilize my life.

454.35 - 455.031

That's right.

455.051 - 470.307 Ken Coleman

And then I decide, is it welding? Is it electrician or whatever you, you know, and I know you mentioned electrician work, but can I give you a quick piece of advice on the electrician piece? I want to challenge you in the next two weeks to go to coffee or lunch or a cocktail with an electrician or two.

471.502 - 490.863 Ken Coleman

And I want you to just go, hey, I'm thinking about kicking the tires on this deal and going into this. Before I do, tell me what you love, what you hate, the good, the bad. How did you start? When did you launch your own business? I would love for you to get that advice from an electrician. Jade, I can't say that enough for young people.

490.903 - 493.025 Jade Warshaw

Don't you have to be 21 to have a cocktail, Kim?

Chapter 3: What are the pros and cons of moving closer to work?

605.113 - 607.737 Jade Warshaw

So how much longer do you plan to be on in the military?

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608.881 - 613.245 Ken Coleman

I'm doing the whole 20, so I've still got 18 more years.

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613.265 - 615.567 Jade Warshaw

Okay. Is it just you or are you married? Do you have kids?

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616.669 - 618.911 Ken Coleman

I'm married with one kid and one kid on the way.

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619.211 - 637.909 Jade Warshaw

Okay, cool. You know, I think you need to take it on a case-by-case basis. So far, you've made it this long without buying, correct? You're currently renting? Yeah. Okay. Yeah, I'm currently renting. I think there's something important about, you know, not stacking up a bunch of real estate in different states and cities.

637.889 - 657.052 Jade Warshaw

Um, two years is kind of where you want to be as far as like not having to take on, um, capital gains and things like that. So I think if you can take it on a case by case basis, because at, at some point purchasing real estate is going to be a big part of your wealth building, but I don't think that you're there yet. I think right now that you, you can continue to rent.

657.072 - 667.846 Jade Warshaw

And as you've been in the military longer, if you end up being stationed somewhere longer, and it seems like this is going to be at least four or five years, it could be worth it to get into real estate. Um, buy a home.

667.926 - 681.345 Jade Warshaw

And then if you know you're moving somewhere and it's going to be a short-term thing, whatever that profit you have, just pocket it, put it in a high yield and let it grow, whatever baby step you're on, that sort of thing until you can buy again long-term. Does that make sense?

682.034 - 704.266 Ken Coleman

Yeah, currently we save, so we have our rent, obviously, but then we also save, we have a brokerage that we call our house fund that we put money into. I'm fine with that. We kind of figured we wouldn't be buying a home for what we assumed was a very long time. We figured we'd just invest it into a brokerage, and then whenever we can buy a home, we have this nice pot of money to pull from.

Chapter 4: How can David improve his job situation?

727.511 - 732.679 Ken Coleman

We really want you to avoid that temptation, and Jay can explain why, but I would just say this.

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734.161 - 742.729 Ken Coleman

You think about 18 years from now, you think about that home fund that they're investing in? That is going to be a sweet down payment on the house you want to build.

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742.749 - 743.189

Maybe even pay cash.

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743.249 - 762.767 Ken Coleman

Maybe cash. And so I love the idea of you guys renting or taking advantage of military housing and just stack cash to build the home of your dreams. I think that'll keep you going if you keep your mind on it. I'm just playing a little mindset thing here, and I'll get back to Jay. But my mindset would be how sweet of a home.

762.747 - 786.763 Ken Coleman

could we build or how could we pay off you know i mean pay cash for this house we want to build and it's just 18 years let me tell you something my friend i'm old enough to remember going 18 years is a long time and i could sit here today and tell you 18 years goes by fast man what baby step are you on um currently we have no debt except for uh student loans

786.878 - 805.449 Jade Warshaw

Okay, so as much as I love the picture that you're painting and I love the idea that you're thinking ahead and putting money away in a brokerage, I'd like to get you a little bit more focused so that we can get to this beautiful reality that Ken has painted and even the reality that you're saying of, hey, in 18 years, this is when we're going to do our dream home.

805.87 - 812.581 Jade Warshaw

So let's pedal back just for a second and make sure that we're going about all of this in the most efficient way possible. Is that fair?

813.022 - 814.064

Yeah. Yeah.

Chapter 5: How can I navigate the challenges of being a disabled veteran with student loans?

3338.325 - 3349.958 Ken Coleman

The phone number for you to jump in is 888-825-5225. If you're new to the program, yes, we talk a lot about money, but a big part of your money life is your work life. It is your greatest adventure.

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3349.938 - 3376.217 Ken Coleman

wealth building tool that is your income and I help folks win in their work life and so we'll take those work-related calls anything you want to talk about on that issue and I promise you Jade's got an opinion on that too so you get you get plenty of advice on that let's go to Mark now in Portland Oregon Mark how can we help hello hello Mark you're live what's happening Alrighty.

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3376.257 - 3404.7 Ken Coleman

So I have kind of like a weird multifaceted question. Um, I am a, um, a hundred percent disabled veteran, but I'm still like total impermanent and I'm still allowed to work though. Um, I have pretty much all my GI bill bill. Um, and I have minimal student loan debt from, uh, getting my degree and I have my, I got my bachelor's in mechanical engineering. Um, but,

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3405.018 - 3435.926 Ken Coleman

kind of the big kind of crux to what i'm wondering is like i get a one-time uh student federal student loan forgiveness uh from the because of the nature of my disability um from being in the navy um so i'm kind of like trying to see like is it worth it to just go to grad school and then just uh max out the student loans and just get them forgiven it seems Kind of sketchy to me, a little bit.

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3435.966 - 3437.608 Ken Coleman

Hold on a second. Hold on. It's legal.

Chapter 6: What are the implications of taking out student loans for grad school?

3437.828 - 3459.59 Ken Coleman

Hold on, hold on, hold on. So what would the master's be in, and why would you get it? It would probably be a master's in mechanical engineering, focused more on, like, building science. Like, building science in a built environment. That's kind of what I'm doing now. So would that set you up for growth financially through promotions? Yeah. Yeah, it would. So what's sketchy?

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3460.571 - 3462.092 Jade Warshaw

Because he has the GI Bill. In fact, yes.

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3462.848 - 3479.262 Ken Coleman

Because I can use my GI bill that pays for the entire tuition and I get a housing stipend. Like if I were to be going, staying in Portland, uh, I would be getting 2300 bucks a month tax free while in school. So, and then on top of that, oops, sorry.

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3479.722 - 3480.263 Jade Warshaw

Oh, go ahead.

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Chapter 7: How should I prioritize my finances after a significant loss?

3480.363 - 3481.784 Jade Warshaw

I had one more question, but go ahead.

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3482.965 - 3509.675 Ken Coleman

And then on top of that, if I were to take out student loans, I could take out up to 65,000 a year, um, for the two years. um, to do that, to kind of offset the loss of income that I have now. Uh, and then another kind of weird aspect to this too, is like, this would be like, if I were to do that, that would be more than what I'm making now with the GI bill and those loans.

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3510.476 - 3526.899 Ken Coleman

Cause there's no taxes associated with that. But, um, and my wife is also in medical school right now too. So just kind of the money is kind of fungible cause we're married, but like, realistically, a lot of the money would probably end up going towards like reducing her loans.

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3527.34 - 3539.64 Jade Warshaw

So let me get let me let me make sure I got my head around this because I'll be honest, like with all the military payments and stuff like that, sometimes it gets confusing. So you've got a little bit of existing student loan debt. How much is that?

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3539.661 - 3541.143 Ken Coleman

10K.

3541.163 - 3545.37 Jade Warshaw

10K. Will the GI Bill pay for that? Pay that off?

Chapter 8: What strategies can I use to balance saving for retirement and children's education?

3545.57 - 3548.976 Ken Coleman

No, but I could get it forgiven right now if I wanted to.

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3550.238 - 3555.086 Jade Warshaw

Okay, so just one thing at a time because I want to help you, but I also want to make sure the people listening understand.

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3555.106 - 3556.468 Ken Coleman

Why won't the GI Bill cover that?

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3556.508 - 3564.281 Jade Warshaw

Because he's already done that. I already have that. The GI Bill would cover you going to grad school, correct?

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3565.303 - 3565.603 Ken Coleman

Yes.

3565.837 - 3579.871 Jade Warshaw

So my question is, why can't you just use the GI Bill to go to grad school if that's what you want to do? And why can't you use the other piece that you had, the federal student loan forgiveness, because of your disability to pay off the $10,000? What's wrong with that?

3581.415 - 3595.395 Ken Coleman

Yeah, that's kind of what I'm thinking, but... And this is where I'm like kind of the moral and ethical dilemma. Like I could do all that, but then I could also take out more student loans and then those would get forgiven because it's just a one-time deal.

3595.415 - 3602.203 Jade Warshaw

Oh, so what you want to do, you want to take out extra student loans knowing that you can get the federal government forgiveness.

3603.345 - 3603.605 Ken Coleman

Yes.

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